HP Joins Big Tech Companies Laying Off Workers Amid AI Push

Core Insights - HP plans to lay off between 4,000 and 6,000 employees as part of a cost-cutting initiative aimed at saving $1 billion over the next three fiscal years, which could represent up to 10% of its workforce [2][8] - Despite reporting better-than-expected revenue of $14.6 billion for the fiscal fourth quarter, HP's profit outlook for fiscal 2026, projected at $2.90 to $3.20 in EPS, fell below analyst consensus [5][6] - The layoffs at HP reflect a broader trend in the tech industry, where companies like Amazon and Microsoft are also reducing their workforce while increasing investments in AI [4][5] Company Strategy - CEO Enrique Lores emphasized the company's commitment to investing in AI-related initiatives, viewing it as a significant opportunity to enhance product innovation, customer satisfaction, and productivity [3] - The restructuring plan is part of a strategic move to align resources with the company's long-term goals, particularly in the context of rising AI investments [8] Market Reaction - Following the announcement of layoffs and the restructuring plan, HP's stock experienced a decline of approximately 2%, contributing to a year-to-date loss of nearly 27% [6]